ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Products are broadly classified into two categories – consumer products and industrial products. Consumer products are products that the ultimate consumer purchases himself for direct use.

Detailed explanation-2: -Private Goods are products that are excludable and rival. Public goods describe products that are non-excludable and non-rival.

Detailed explanation-3: -Types of Consumer Goods Nondurable goods are consumed in less than three years, are commonly used one time and include packaged food and drinks or laundry detergent. Service goods include items like auto repairs and haircuts that are intangible consumer goods.

Detailed explanation-4: -A good is an “economic good” if it is useful to people but scarce in relation to its demand so that human effort is required to obtain it. In contrast, free goods, such as air, are naturally in abundant supply and need no conscious effort to obtain them.

Detailed explanation-5: -The two types of products are goods and services. We may use the two interchangeably. But, in business, marketers differentiate between the two. Goods represent tangible products such as clothing, laptops, smartphones, bicycles, cars, food, and beverages.